The US Government Doesn't Change, That's Just the Way It Is

Things will never be the Same

As we approach the end of the US Government's fiscal spending year, it's impossible to ignore the staggering national debt, which now hovers around $33 trillion, having increased by another $1.8 trillion this year. This surge is largely attributed to the promises made by the politicians to combat poverty, uplift the middle class, and secure a brighter future for all. However, as we breakdown the data, it becomes painfully clear that these promises have largely remained unfulfilled, leaving countless Americans disillusioned and financially strained as the dollar has lost -95%in purchasing power since 1971. To echo the sentiments of the late 2Pac, it often feels like "Some things will never change."

The Broken Promises:

Year after year, election after election, we've been presented with pledges of change. We've been assured that the government would take concrete steps to alleviate poverty, strengthen the middle class, and open the doors to prosperity. Yet, despite these assurances, what we've observed instead is an ongoing struggle for many Americans, particularly those in the middle class.

According to a report by Primerica, a significant 74% of Americans earning up to $100,000 claim they are unable to save for their future, with 72% citing the high inflation not seen since the 1970s as a primary reason. Pew research reveals that the middle class, defined as households with an income of $90,000, has dwindled from 61% to 50% since 1971, a staggering decline of 18%. A recent Gallup study shows that 59% of the middle class believes they will be worse off than their parents. Meanwhile, the percentage of low-income Americans has risen by 16% over the past five decades, from 25% to 29%. The pain of inflation is being felt across all income levels, echoing 2Pac's words from 30 years ago, "I see no changes; There's war in the streets and war in the Middle East. Instead of a war on poverty; that's just the way it is."

Taxation & Inflation:

One of the ways the middle class has been squeezed is through taxation and inflation. The burden of funding government programs often falls disproportionately on the shoulders of the middle class and if taxes don’t rise to pay for the government spending it comes through the deficit aka money printing.  As the cost of living has surged, with cumulative inflation rising 20% over the past three years (in line with the increase of the national debt in the same time frame), inflation continues to erode the purchasing power of the dollar, intensifying the struggle for middle-class families. Americans are becoming increasingly vocal about the pain inflicted by inflation, evidenced by protests for higher wages and student debt forgiveness. More and more people are realizing, "That's just the way it is; things will never be the same" – a sentiment shared by 2Pac.

The government's approach to addressing economic challenges has been by consistently increasing the national deficit, which now stands at $33 trillion. This has further exacerbated the pain of the middle class. Annual deficits are now averaging $1.5 trillion, and projections for fiscal year 2023 indicate a staggering $2 trillion deficit, the largest in a non-recession year.

Record Homelessness:

Perhaps one of the most heartbreaking consequences of these broken promises is the unprecedented homelessness crisis plaguing the nation. The US is currently grappling with record-high homelessness, as tent cities are springing up across the country, reminiscent of the Hoovervilles of the 1930s (The Great Depression). Despite assurances of progress and support, the number of people without a place to call home continues to surge. Housing un-affordability has reached record levels, and rents have skyrocketed. As the cost of shelter continues to rise, unemployment is following suit, with continuing unemployment claims seeing a staggering 28% increase on a Year over Year basis, while job openings have plummeted by 22% YoY.

Conclusion:

In these challenging times, it is crucial to acknowledge the struggles faced by the middle class and those who have been let down by the unfulfilled promises of our politicians. The lyrics of 2Pac's "Changes" serve as a poignant reminder that change is urgently needed. It is time for our society to demand more from our leaders and to collectively work towards a future where these promises are not mere empty words, but tangible actions that enhance the lives of all Americans.

"We gotta make a change; it's time for us, as a people, to start making changes. Let's transform the way we live, let's change the way we treat each other.  You see, the old way isn't working; it's on us to do, what we gotta do, to survive." – 2Pac

*******The Coastal Journal encourage you to stay informed, engage in conversations about how printing money does not solve todays and our future issues, and hold our leaders accountable for the betterment of our society.